TL;DR
- Stabilizing Flows: Digital asset funds saw $187 million in outflows, a sharp slowdown from prior weeks, hinting at a potential sentiment shift highlighted by CoinShares.
- Market Activity: Total AuM fell to $129.8 billion, yet trading volumes hit a record $63.1 billion, signaling heavy repositioning during a challenging price environment.
- Diverging Assets: Bitcoin posted $264 million in outflows, while altcoins like XRP, SOL, and ETH attracted inflows, with XRP leading both weekly and year‑to‑date figures.
Digital asset investment products recorded a notable slowdown in outflows last week, with CoinShares reporting $187 million leaving global funds. The moderation follows two heavy weeks of roughly $1.7 billion each, offering early indications that sentiment may be stabilizing despite continued price pressure across major cryptocurrencies. CoinShares highlighted that shifts in the pace of flows often provide clearer signals than direction alone, suggesting the latest data could reflect an emerging market inflection point.
Record Trading Activity Amid Lower AuM
The recent price correction pushed total assets under management to $129.8 billion, the lowest level since March 2025 when U.S. tariff announcements rattled markets. Even with declining valuations, digital assets trading activity surged. ETP volumes reached a record $63.1 billion for the week, surpassing the previous high of $56.4 billion set in October. CoinShares noted that elevated volumes may indicate heightened repositioning as investors navigate tighter liquidity conditions and reassess risk exposure.
Regional Flows Show Pockets of Strength
Despite the broader digital asset funds outflow trend, several regions posted meaningful inflows. Germany led with $87.1 million, followed by Switzerland with $30.1 million, Canada with $21.4 million, and Brazil with $16.7 million. These pockets of strength contrast with the global headline figure and reinforce the view that investor sentiment is not uniformly negative. CoinShares emphasized that such regional divergences often emerge during periods of market stress, reflecting varying institutional strategies and regulatory environments.
Bitcoin Outflows Persist While Altcoins Attract Interest
Bitcoin remained the primary source of negative sentiment, recording $264 million in outflows and standing out as the only major asset with net withdrawals. In contrast, select altcoins saw renewed demand. XRP led inflows with $63.1 million, followed by Solana at $8.2 million and Ethereum at $5.3 million. XRP has now accumulated $109 million in year‑to‑date inflows, making it the strongest performer on that metric. The divergence underscores shifting investor preferences during a volatile stretch for digital assets.
U.S. spot crypto ETFs showed mixed flows from Feb. 2 to Feb. 6. Spot Bitcoin ETFs saw $318 million in net outflows, while spot Ethereum ETFs recorded $166 million in net outflows. On Feb. 6 alone, spot Bitcoin ETFs posted $371 million in net inflows, contrasting with $16.75 million in net outflows from Ethereum products. Solana spot ETFs logged $8.92 million in net outflows over the period, while XRP spot ETFs stood out with $39.04 million in net inflows.
